Average mandi prices of major food crops remain below MSP amid bumper harvest

NOOR MOHMMED

23/May/2025

RBI bulletin states mandi prices of major food crops except wheat are below MSP owing to bumper kharif and rabi harvests.
The surplus production has led to easing food crop prices, supporting a positive outlook for food security in India.
Despite below-MSP prices, ample availability from harvests ensures steady food supplies and market stability.

According to the latest Reserve Bank of India (RBI) bulletin, the average mandi prices of major food crops, with the exception of wheat, are currently ruling below the minimum support price (MSP). This trend is primarily attributed to the bumper harvests of both kharif and rabi crops in the recent agricultural seasons.

The substantial production has resulted in an abundance of supply in mandis (agricultural markets), putting downward pressure on prices. This has led to mandi prices falling below the MSP set by the government, which is typically intended to provide farmers with a minimum guaranteed return and stabilize the market.

While this situation may raise concerns about farmers’ profitability, the easing prices have simultaneously contributed to a positive outlook for food security in India. The ample availability of major food crops ensures that consumer markets remain well-stocked, reducing the risk of shortages and inflationary pressures on food items.

This dynamic reflects the complex balance between supporting farmers through MSP and maintaining affordable food prices for consumers. The RBI’s report underscores the importance of continued monitoring and strategic interventions to ensure that the interests of both farmers and consumers are balanced.

Overall, the RBI bulletin highlights a period of agricultural abundance that, while challenging for mandi price levels, strengthens India’s food security position in the near term.

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Average mandi prices of major food crops remain below MSP amid bumper harvest

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